
Amazon has introduced a stricter performance review process that incorporates adherence to the company’s 16 Leadership Principles (LPs) into employee evaluations, marking the first time these principles are formally embedded as a core metric in reviews.
Under the new system, originally reported by Eugene Kim at Business Insider, managers will now use a three-tiered scale that includes an assessment of how effectively employees demonstrate these principles—such as customer obsession and frugality—alongside traditional measures of performance and potential. These three factors combine into an Overall Value (OV) score that influences raises, promotions, and the possibility of being placed on a performance improvement plan.